Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly:
1. CONSTELLATION BRANDS: Responding to investors’ concern over potential risk to Constellation Brands (STZ) if the U.S. withdraws from NAFTA, Morgan Stanley analyst Dara Mohsenian argued on Monday that it could actually be a positive for the company as it would likely experience an indirect benefit from a possible weakening of the Mexican peso versus the U.S. dollar. Furthermore, Mohsenian told investors that the administration and Republicans are unlikely to support placing an unpopular regressive tax in place on beer. Nonetheless, pre-NAFTA U.S. tariffs on Mexican beers were only 1.7%, which would be a manageable level, the analyst contended.
2. GOVERNMENT SERVICES: On Wednesday, Wells Fargo analyst Ed Caso upgraded CACI (CACI), Leidos (LDOS) and SAIC (SAIC) to Outperform from Market Perform while reiterating Outperform ratings on Booz Allen (BAH) and favorite idea CSRA (CSRA). The analyst cited better fundamentals and potential to be meaningful beneficiaries of a reduction in the U.S. corporate tax rate given most are now essentially marginal tax payers.
3. DRUG DISTRIBUTORS, PBMS: Shares of a number of drug distributors, including AmerisourceBergen (ABC), Cardinal Health (CAH), McKesson (MCK), and several pharmacy benefit managers, including Express Scripts (ESRX) and CVS Health (CVS), were under pressure on Thursday as President Trump held a press conference to discuss his initiative to fight the U.S. opioid epidemic, which he has now declared a national emergency. “Week in Review” is The Fly’s weekly recap of its recurring series of “Trump Effect” exclusive stories.
